BAO 2203 Corporate Accounting Assignment
Semester 2 2014
Newcrest Mining Ltd (NCM Ltd) - Impairment of assets
Please read through the articles provided on VU collaborate and answer the following questions. Please note that in order to gain a superior result you will need to undertake extensive research on the topic of impairment and of NCM Ltd.
Question Total marks Student score
1 When should companies undertake an impairment test? 10 Red coloured words are my questions.
2 In the case of Newcrest Mining Ltd (NCM), was the cause of the impairment operational, financial or both? Explain. 6
3 What effect will the impairment have on the cash flows, balance sheet and financial performance of a company? Why is it NCM Ltd.â€™s preference to have a debt ratio of 15%? Explain. 8
4 How does the impairment of assets affect the strategic decision making of NCM Ltd? Why and from whom is NCM Ltd â€œunder pressureâ€ to conduct a capital raising? 6
5. Is the impairment material? How do you know? Discuss any additional disclosure requirements NCM Ltd should make with respect to the impairment of assets. 6
Presentation, grammar, spelling, references. 4
Student advice in undertaking this assignment:
You should undertake an extensive literature review on the topic of impairment to gain an understanding of its application. Refer to relevant accounting standards, the Framework and ASX requirements in answering the questions. Refer to other companies that have had to undertake an impairment to gain general knowledge of its application. Relate this knowledge with the NCM Ltd case. You may need to go back and refer to your previous accounting studies, for example to improve your knowledge on ratio analysis. Ensure you undertake a â€œspell checkâ€ of the assignment. Use the Academic Support for Students www.vu.edu.au/language-learning or e-mail firstname.lastname@example.org.
ASSIGNMENT PREPARATION AND SUBMISSION GUIDELINE
This is a group assignment (2 students per assignment). Individual submission without the permission of the unit coordinator will NOT be accepted.
The assignment question will be provided in the unit space of the VU Collaborate.
THE ASSIGNMENT MUST BE HANDED IN TO YOUR LECTURER IN THE LECTURE THEATRE AT THE END OF THE WEEK 8 LECTURE.
Students must submit both the printed copy along with an assignment cover sheet and an electronic copy of assignment through the Assessment Dropbox in the VU Collaborate unit space assigned for the assignment submission. Failure to submit both a printed copy and an electronic copy through VU Collaborate will result in a fail grade.
DO NOT HAND IN YOUR ASSIGNMENT UNDER YOUR TUTORâ€™S OFFICE DOOR OR VIA E-MAIL.
This assignment counts towards 20% of the total assessment. Any assignments handed in late without prior permission of the lecturer/tutor will be penalised 1 (out of 20) mark per day.
Special Requirements for assignment that must be adhered to:
â€¢ Hand in one assignment per group of two students and read drafts of each otherâ€™s work to ensure quality and consistency.
â€¢ The two partners must be from the same tutorial class.
â€¢ Assignments are to be no longer than 2000 words in length.
â€¢ Font: size â€“ 12-point; style â€“ Calibri;
â€¢ Line spacing: one and a half (1.5) line spacing, write on one side of the (A4) paper.
â€¢ Page margin: 2.54 cm/ 1 inch on each side (right, left, top and bottom)
â€¢ Insert page number
â€¢ College of Business Assessment declaration form: must be completed, signed by all the partners and included.
â€¢ Ensure that the front page contains the title, your name, your ID number, and importantly, your tutorial day and time.
â€¢ Your report must display headings (as presented in the marking scheme) and sub-headings to help establish its structure and aid the marking process.
â€¢ The referencing system you are required to use is the Harvard System. It is important you show evidence of research for the assignment beyond Deegan 7e and the articles. Ensure these are referenced appropriately in your bibliography. Assignments not using the Harvard system, showing no evidence of research for information or are obviously plagiarised will be returned unmarked.
â€¢ The similarity percentage must NOT exceed 20 per cent.
â€¢ Assignments will be penalised severely where plagiarism (copying directly from textbooks, journal etc. without due recognition) has occurred.
â€¢ Do not use plastic covers or folders for your assignment. Simply staple it together.
â€¢ Assignments will be handed back to students in their tutorial in WEEK 12.
â€¢ You need to RESEARCH the topic in depth to gain a favourable mark.